IRS boosts mileage deduction rate
Acknowledging the impact of higher gas prices on businesses and individuals, the Internal Revenue Service this week said it will raise its automobile mileage deduction rate for the second half of 2008.
The agency will boost the optional standard rate, used to compute deductible operating costs for vehicles, to 58.5 cents a mile, beginning July 1, up from 50.5 cents, the rate used since January.
The IRS normally updates the mileage rates once a year in the fall, but it has come under pressure to adjust rates sooner.
Regular gasoline prices on Tuesday averaged $4.07 a gallon nationwide, according to information from AAA no fax payday loans http://abc-cashadvance.com. In Fort Lauderdale, it averaged $4.13; in Miami, it was $4.12; and in West Palm Beach/Boca Raton, it was $4.14.